Posted on 12/05/2009 2:36:31 PM PST by NaturalBornConservative
Ignoring The Problem
The Cost of Paying the Debt Now
By starting today, the Federal Government can pay off the National Debt in 30 years by making interest and principal payments of $699,013,323,930.52 per year (see the chart below). In Fiscal Year 2009 the government made interest payments of $383,656,592,545.78. So it would take an additional $315,356,731,384.74 in annual payments to completely extinguish the debt in 30 years. By starting now, the total cost of interest will be $8,883,038,042,900.88, at 4%, over 30 years.
Opportunity Cost: Waiting until 2019
If the Federal Government chooses to wait until 2019 before addressing the debt, the cost rises dramatically. If we choose to wait, our annual principal and interest payments will rise to $1,111,746,741,447.46 per year (see chart below), an increase of $412,733,417,516.94 in the annual payment. The total interest on the debt will rise to $14,128,040,568,409.10, at 4%, over 30 years. Thus, the cost of waiting is an additional $5,245,002,525,508.24 in interest.
So What Are You Waiting For?
Are you wondering what will happen when interest rates rise? If politicians were serious about fiscal responsibility, surely they would find a way to cut government spending. All of Washington, DC is guilty. The longer you ignore a problem, the greater it becomes. America needs to stop the deficit spending 'now'. Politicians need to start paying off the debt, and to put an end to annual budget deficits. Politicians need to stop making excuses, and quit playing political games.
References:
http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Paying The National Debt For Dummies
The Raw Truth: GDP vs National Debt
Gross Domestic Product (GDP) Mumbo Jumbo
That’s just fine. And I just received a notice from the bank showing how much I could save if I changed from a 30 year fixed to a 15 year fixed. Problem is, I don’t have the money to pay the extra principle.
So, to come up with the extra money, we can try raising taxes. Which would almost certainly have the opposite effect, as they are high already. Capital would flee the country and activity would slow ... less to tax.
Okay, we can try lowering taxes. That would over time bring in some more money, but not consistently.
Well, we can just spend less money and pay out of the savings! Ah, now there’s a plan. Now, where do we cut? Veteran’s Benefits? Soldiers’ Pay? The military as a whole? No? How about social security benefits? Is that doable? No? Health care! The government pays for half of health care already! No? How about all that state funding? You know dollar matching and all that stuff? The states are broke, too? Hmmm.... Foreign aid, illegal aliens, road work? Not nearly enough to put a dent in $300 billion?
We’re in trouble.
Okay, we can try lowering taxes. That would over time bring in some more money, but not consistently.
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Tax cuts attract investment. If there is commitment to keep them low, it attracts more. Counter-intuitive indeed!
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Well, we can just spend less money and pay out of the savings! Ah, now there’s a plan. Now, where do we cut? Veteran’s Benefits? Soldiers’ Pay? The military as a whole? No? How about social security benefits? Is that doable? No? Health care! The government pays for half of health care already! No? How about all that state funding? You know dollar matching and all that stuff? The states are broke, too? Hmmm.... Foreign aid, illegal aliens, road work? Not nearly enough to put a dent in $300 billion?
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1) Since federal salaries average double that of the private sector despite total job security, just cut them by 2/3.
2) Eliminate every new government program since JFK.
There is No economic Crisis,... There is No energy crisis,... There is No debt crisis,... Only a Crisis of IGNORANCE. - Buck Minster Fuller.
Hell with that - try every govt program since Teddy Roosevelt.
>Hell with that - try every govt program since Teddy Roosevelt.
I was going to add “FDR” but you raised me a Teddy!
Thank you!
great minds et al.... I was thinking FDR myself, but thought - heck with that woodrow did quite a bit of damage himself.....
great minds et al.... I was thinking FDR myself, but thought - heck with that woodrow did quite a bit of damage himself.....
Yeah, woodrow.
I forgot about the fact that federal workers work 8 hours a day, unlike us serfs.
ping
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